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Basically, we're setting a precedent for socialism. Instead of letting market capitalism run its course, the gov't is becoming a major stakeholder in private company entities with taxpayers having no say so on how the funds will be allocated. My concern is that this won't be the last of the bailouts and unfortunately no good deed goes unpunished so we will in fact see unintended consequences from all of this. Gov't involvement almost always result in greater inefficiency. Been traveling lately? Also, we may find companies expecting bailouts going forward versus making the tough decisions they need to run their businesses. Last, taxpayers will very likely lose billions when all of this is said and done with social security being pilfered to nothing. Taxes will go up exponentially for everyone with tax rates looking similar to our European counterparts. Yep, we're complaining now but these days will be fondly remembered as the "good old days" in a few years.

For most of us the economy is still OK. (Today and maybe tommorrow, but next week, who knows? Today, many of us still have money in the bank, our accounts are safe (today), and we have a job to go to. Some of us this last weekend were still buying DVD's, 46 inch Plasma TV's and going on nice vacations. But if Congress does not do something soon, our economic system will collapse and chaos will result.

Congress already has acted.

It has invaded Iraq. It has pumped money into the economy. It has propped up failing banks.

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Originally Posted by Refugee56

Maybe our credit cards will stop working, or millions of us will be thrown out of our jobs, or our bank accounts will be emptied. Or store shelves will become bare. Who knows!!

I know.

What you're describing is a liquidity crisis, or "credit crunch."

Unless the banks are bailed out, they will fail, inducing panic with Sheeple panicking and pulling their money out of banks, causing more banks to fail and those failing banks will cause even more banks to fail.

That is exactly what happened between late 1930 and early 1933. The government did act, but too late and most banks had already closed.

With less money available for credit, banks will cease issue of all sub-prime credit cards, cancel the accounts and demand immediate payment in full in accordance with the card holder agreement (better read it -- or do you people find that stuff "boring?").

There would be less money for new prime credit card accounts, a criteria would probably be developed so that people with a late payment in the last six months get their cards canceled and their accounts closed and a demand for payment in full.

Everyone else would have their credit limits reduced.

There would be little money available for auto loans and not less than a 20% down-payment would be required for a loan term of 24 or 36 months, not 60 or 72 months.

Almost no money would be available for sub-prime auto loans.

Mortgages, where money is available would require 20% to 40% down and credit risks, those with credit scores below 750 or so might be forced into 15-year mortgages.

Businesses would also be seriously affected, with no money for expansion and even worse, little or no credit to purchase new inventories or normal inventory amounts.

Again, you can look at the past, specifically the 1930s to see what would happen now.

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Originally Posted by Refugee56

How will the social frabic of our society hold up?

You can't base that on the past. Past American societies were vastly different. They were community based. There was no unemployment insurance in the 1920s and it wasn't needed, as people had their families, their neighbors, friends, churches and community for support.

All generations in the past were the "my community" generation.

Today we have the "We are Gods" generation who deny reality and they gave us the "Me Generation" who produced the "Me and Myself" Generation who are currently producing the "Me, Myself and I" Generation.

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Originally Posted by Refugee56

Will there be huge riots and general civil unrest?

No, Americans are conditioned not to do that.

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Originally Posted by Refugee56

Will our government fail?

That's an absurd question. It wouldn't be unfair to question the IQ or mental capacity of such an individual.

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Originally Posted by Refugee56

If things get really bad how ugly will it get on the streets of American cities?

Well, again Americans are conditioned not to do that, although perhaps a few of the uncouth (mostly welfare pukes) might get rambunctious, they have a nice concentration camp waiting for them.

I am becoming very concerned about the current fiscal crisis & the warnings from Washington DC that the economy could crash any day now while the government tries to get other nations to buy our debt. Gas prices are predicted to rise higher than what we paid this past Spring so food prices with also rise.

Clearly the message is that things are going to get very bad for our nation & people with IRA's\ stock savings will take a big loss. Unemployment is forecast to rise even more with job losses. Recovery in the housing market may take longer than 2 years so equity goes down.

What is important is to keep your job at all costs & don't use credit cards if you can. Save money whenever possible.

Deep down inside I've always wanted to be a looter. Maybe now I'll get my chance!!!!! Woot!!!!!!

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